All Forum Posts by: Richard A.

@Luke Carl

We'd rather owner finance on favorable terms vs mortgage for several reasons. No underwriting; quicker turnaround; terms are negotiable; its cheaper; it doesn't go against credit report; frees you up to buy another property; etc. Yes, rates are great right now. But, we would prefer getting more properties over the long run. Especially, if the debt service is paid by tenants and still cash flow. The real question is why wouldn't you owner finance (on favorable terms)? Maybe you have deep pockets?? A lot of us on here don't. 

Same as long term rental. No down payment & 2-3% interest. 30 year amortized. Seller may object to no down payment. But, the down payment is the rehab you'll have to put into it. Naturally, they get first lien position if it's owned free-and-clear. That's best case scenario. If they counter, which they probably will, it's important to find out what's important to them. There's so many ways to negotiate this. A few: purchase price, interest rate, balloon payment, amortization schedule, delayed payments until rehab is complete and property is on rental market, etc.. 

Any issues with humidity or the similar? 

We had a contractor tell us LVT/LVP over concrete foundation is a no-go in FL. We love it in NC. 

1. Get 401k loan to avoid penalty and tax. Most loans are at less than 1% right now. 

2. Start building private investor Rolodex. You'll use your money as reserves but OPM as operating funds. 

I'll have to agree with James and Kenneth. Keep it, save the cash flow for upcoming, necessary repairs. You're cash flowing pretty good.

Also, call a few local banks/ credit unions, open a business account (if you don't already have one), and get a business line of credit from them (just in case you need to complete the repairs ahead of schedule). Your cash flow will cover the monthly payment of the LoC while you get back on your feet. 

I would opt for a few smaller properties. 

Not CA. LOL. We've had good success in NC and FL so far.

Hey Jessica. Seems like you're a long distance investor as well. Any chance of partnering up with someone local to Bedford on the repairs? 

What would you do with the funds if you sold? Where will you reinvest the funds? And will you even break even? A buyer will likely also notice the repairs needed and your asking price may not end up being the purchase price.

Have you refinanced already? 

I'm a proponent of keeping properties as long as they are profitable by at least $1. 

Just curious. Why High Point? What are you seeing?

We went with quit-claim deed to LLC. The LLC has its own bank account. And the tenants received a "Transfer of Ownership" lease amendment with LLC's new contact information and new payment instructions. The biggest con to this option is POSSIBILITY of invoking the due-on-sale clause. We contacted our lender prior to and let them know we were transferring to LLC. Our lender did not care. So far, we have not had any issues.